Perry Homes v. Cull
Full Opinion (html_with_citations)
delivered the opinion of the Court, in which
Since 1846, Texas law has provided that parties to a dispute may choose to arbitrate rather than litigate.
The Plaintiffs argue â and we agreeâ that sending them back to the trial court not only deprives them of a substantial award but also wastes the time and money spent in arbitration. But they knew of this risk when they requested arbitration at the last minute because all of the Defendants objected. Accordingly, we vacate the arbitration award and remand the case to the trial court for a prompt trial.
I. Background
In 1996, Robert and Jane Cull bought a house from Perry Homes for $233,730. They also bought a warranty from Home Owners Multiple Equity, Inc. and Warranty Underwriters Insurance Company. The warranty agreement included a broad arbitration clause providing that all disputes the Culls might have against Perry Homes or the warranty companies were subject to the Federal Arbitration Act, and would be submitted to the American Arbi
Over the next several years, the home suffered serious structural and drainage problems. According to the Culls, the Defendants spent more effort shifting blame than repairing the home. When the Culls sued in October 2000, the warranty companies (but not Perry Homes) immediately requested arbitration; the Culls vigorously opposed it, and no one ever pressed for a ruling. At the same time, the Cullsâ attorneys began seeking extensive discovery from all of the Defendants.
After most of the discovery was completed and the case was set for trial, the Culls changed their minds about litigating. Instead they asked the trial court to compel arbitration under precisely the same clause and conditions to which they had originally objected. The trial judge expressed reservations, saying:
I really have a problem with people who have competent counsel who wait 14 months and after all this much effort in the courthouse has taken place, to come in and say that they have not waived that arbitration. That arbitration clause was there when the lawsuit was filed.
Nevertheless, the trial court ordered arbitration because the Defendants had not shown any prejudice from litigation conduct:
[A]ll I have heard from [defense counsel] insofar as what is the prejudice suffered by people you represent is that they have participated in litigation activities that may or may not have been required by the arbitrator. So without anything further, I am going to grant the motion to abate the case for arbitration.
The order was signed December 6, 2001, four days before the case was set for trial. The Defendants filed petitions for mandamus in the court of appeals and this Court, both of which were denied without opinion within a few days.
After a year in arbitration, on December 24, 2002, the arbitrator awarded the Culls $800,000, including restitution of the purchase price of their home ($242,759), mental anguish ($200,000), exemplary damages ($200,000), and attorneyâs fees ($110,000). The Defendants moved to vacate the award, again arguing (among other things) that the case should never have been sent to arbitration after so much activity in court. The trial court overruled the objection, confirmed the award, and added post-judgment interest duplicating that already in the award; the court of appeals affirmed after deleting the duplicative interest.
II. When Should Orders Compelling Arbitration Be Reviewed?
At the outset, the Culls assert it is too late to review the trial courtâs order referring this case to arbitration. First, they argue the pre-arbitration mandamus proceedings establish the law of the case
Second, the Culls argue that an order compelling arbitration can only be reviewed before arbitration occurs. The Culls address none of the cases in which this Court and the United States Supreme Court have reviewed such orders after arbitration.
But most important, the Culls do not address section 16 of the Federal Arbitration Act, which expressly prohibits pre-arbitration appeals:
Except as otherwise provided in section 1292(b) of title 28 [providing for certified questions to federal circuit courts], an appeal may not be taken from an interlocutory order ... directing arbitration to proceed under section 4 of this title [providing for orders compelling arbitration] ....11
This ban on interlocutory appeals of orders compelling arbitration was added by Congress in 1988 to prevent arbitration from bogging down in preliminary appeals.
We agree that post-arbitration review of referral may create (as the Culls allege) a âhuge waste of the partiesâ resources.â But if review is available before arbitration, parties may also waste resources appealing every referral when a quick arbitration might settle the matter. Frequent pre-arbitration review would inevitably frustrate Congressâs intent âto move the parties to an arbitrable dispute out of court and into arbitration as quickly and easily as possible.â
III. Do Courts or Arbitrators Decide Waiver?
The Culls also assert that waiver of arbitration by litigation conduct is an issue to be decided by arbitrators rather than courts. To the contrary, this Court and the federal courts have held it is a question of law for the court.
First, âwaiverâ and âdelayâ are broad terms used in many different contexts. Howsam involved the National Association of Securities Dealersâ six-year limitations period for arbitration claims, not waiver by litigation conduct; indeed, it does not appear the United States Supreme Court has ever addressed the latter kind of waiver. Although the federal courts do not defer to arbitrators when waiver is a question of litigation conduct, they consistently do so when waiver concerns limitations periods or waiver of particular claims or defenses.
Second, the Howsam court specifically stated that âparties to an arbitration contract would normally expect a forum-based decisionmaker to decide forum-specific procedural gateway matters.â
Finally, arbitrators generally must decide defenses that apply to the whole contract, while courts decide defenses relating solely to the arbitration clause.
Every federal circuit court that has addressed this issue since Howsam has continued to hold that substantial invocation of the litigation process is a question for the court rather than the arbitrator â including the First,
IY. When Is the Litigation Process Substantially Invoked?
We have said on many occasions that a party waives an arbitration clause by sub
⢠filing suit;38
⢠moving to dismiss a claim for lack of standing;39
⢠moving to set aside a default judgment and requesting a new trial;40
⢠opposing a trial setting and seeking to move the litigation to federal court;41
⢠moving to strike an intervention and opposing discovery;42
⢠sending 18 interrogatories and 19 requests for production;43
⢠requesting an initial round of discovery, noticing (but not taking) a single deposition, and agreeing to a trial resetting;44 or
⢠seeking initial discovery, taking four depositions, and moving for dismissal based on standing.45
These cases well illustrate the kind of conduct that falls short. But because none amounted to a waiver, they are less instructive about what conduct suffices. We have stated that âallowing a party to conduct full discovery, file motions going to the merits, and seek arbitration only on the eve of trialâ would be sufficient.
We begin by looking to the standards imposed by the federal courts. They decide questions of waiver by applying a totality-of-the-circumstances test on a case-by-case basis.
⢠whether the movant was plaintiff (who chose to file in court) or defendant (who merely responded);48
⢠how long the movant delayed before seeking arbitration;49
⢠whether the movant knew of the arbitration clause all along;50
⢠how much pretrial activity related to the merits rather than arbitrability or jurisdiction;51
⢠how much time and expense has been incurred in litigation;52
⢠whether the movant sought or opposed arbitration earlier in the case;53
⢠whether the movant filed affirmative claims or dispositive motions;54
⢠what discovery would be unavailable in arbitration;55
⢠whether activity in court would be duplicated in arbitration;56 and
⢠when the case was to be tried.57
Of course, all these factors are rarely presented in a single case. Federal courts have found waiver based on a few, or even a single one.
We agree waiver must be decided on a case-by-case basis, and that courts should look to the totality of the circumstances. Like the federal courts, this Court has considered factors such as:
⢠when the movant knew of the arbitration clause;59
*592 ⢠how much discovery has been conducted;60
⢠who initiated it;61
⢠whether it related to the merits rather than arbitrability or standing;62
⢠how much of it would be useful in arbitration;63 and
⢠whether the movant sought judgment on the merits.64
Thus, we disagree with the court of appeals that waiver is ruled out in this case solely because the Culls âdid not ask the court to make any judicial decisions on the merits of their case.â
We also disagree with the Defendants that different standards should apply to plaintiffs and defendants. As parties may begin arbitration without a court order, it is certainly relevant that a plaintiff chose to file suit instead. But Texas procedure also contemplates that parties may file suit in order to compel arbitration.
We recognize, as we have noted before, âthe difficulty of uniformly applying a test based on nothing more than the totality of the circumstances.â
Moreover, this test is quite similar to one we have long recognized and recently applied to arbitration â estoppel. Estoppel is a defensive theory barring parties from asserting a claim or defense when them representations have induced âaction or forbearance of a definite and substantial characterâ and âinjustice can be avoided only by enforcement.â
The answer to most questions regarding arbitration âflow inexorably from the fact that arbitration is simply a matter of contract between the parties.â
V. Is a Showing of Prejudice Required?
Although convinced that the Culls had substantially invoked the litigation process, the trial court compelled arbitration because the Defendants did not prove an arbitrator would not have allowed the same discovery. âEven substantially invoking the judicial process does not waive a partyâs arbitration rights unless the opposing party proves that it suffered prejudice as a result.â
The Defendants ask us to reconsider this requirement. They point out that Texas law does not require a showing of prejudice for waiver, but only an intentional relinquishment of a known right.
We decline the Defendantsâ invitation based on both federal and state law. The Defendants say the federal courts are split on the issue, but the split is not very wide. Of the twelve regional circuit courts, ten require a showing of prejudice,
Thus, we agree with the courts below that waiver of arbitration requires a showing of prejudice.
VI. Was Arbitration Waived Here?
A. Did the Culls Waive Arbitration?
It remains only to apply these rules to this case.
Unquestionably, the Culls substantially invoked the litigation process, as their conduct here far exceeds anything we have reviewed before. Before arbitration was ordered, the Culls did not deny taking ten depositions, and the courtâs file (of which the trial judge took judicial notice) included:
⢠their initial objection to arbitration covering 79 pages;
⢠the Defendantsâ responses to requests for disclosure;
⢠the Cullsâ five motions to compel, attached to which were 76 requests for production of documents regarding complaints, inspections, repairs, and settlements relating to eight other homes in the same subdivision;
⢠Perry Homesâ two motions for protective orders regarding six designees noticed for deposition by the Culls on nine issues (including purchase and preparation of the lot, design and construction of the foundation, sale of this home and others in the subdivision, and attempts to deal with the Cullsâ and other foundation complaints), with an attachment requesting 67 categories of documents (including all photos, videos, correspondence, insurance policies, plans, soil tests, permits, subcontractors, contracts for sale, and repairs relating to the house or the suit, all complaints about any house in the subdivision, and Perry Homesâ articles of incorporation, by-laws, minutes, and fi-nancials); and
⢠the Cullsâ notices of depositions for three of the Defendantsâ experts with 24 categories of documents requested from each (including all documents relating to this case, all their articles,*596 publications, or speeches given in their fields of expertise, all courses or seminars they had attended, all persons they had studied under, and all reference books or treatises in their libraries).
There is simply no question on this record that the Culls conducted extensive discovery about every aspect of the merits.
But under the totality-of-the-circumstances test, discovery is not the only measure of waiver. Here, when the warranty defendants initially moved to compel arbitration, the Culls filed a 79-page response opposing it, asserting that the AAA âis incompetent, is biased, and fails to provide fair and appropriate arbitration panels.â They complained of the AAAâs fees, and asserted that as a result the âpurported arbitration clause is unconscionable and unenforceable, and this Courtâs enforcement of such would be nothing short of ridiculous and absurd.â This, plus their prayer asking the trial court to deny the motion to compel arbitration âin its entirety,â belies the court of appealsâ conclusion that âthe Culls merely opposed the use of the AAAâ rather than arbitration itself.
The Culls also moved for arbitration very late in the trial process. It is true that Perry Homes moved to continue the trial setting when the Culls sought arbitration, requesting about ten weeks to finish deposing experts. Because the trial court ordered arbitration, no one knows whether the case would have gone to trial (including the unnamed court clerk cited by the dissent). But in view of the written discovery and depositions already completed, the record is nevertheless clear that most of the discovery in the case had already been completed before the Culls requested arbitration. The rule that one cannot wait until âthe eve of trialâ to request arbitration is not limited to the evening before trial; it is a rule of proportion that is implicated here.
Then 14 months after filing suit and shortly before the December 2001 trial setting, the Culls changed their minds and requested arbitration. They justified their change of heart on the basis that they wanted to avoid the delays of an appeal. But their change unquestionably delayed adjudication of the merits; instead of a trial beginning in a few days or weeks, the plenary arbitration hearing did not begin until late September of 2002 â almost ten months after the Culls abandoned their trial setting. Moreover, to the extent arbitration reduces delay, it does so by severely limiting both pretrial discovery and post-trial review. Having enjoyed the benefits of extensive discovery for 14
It is also unquestionably true that this conduct prejudiced the Defendants. âPrejudiceâ has many meanings, but in the context of waiver under the FAA it relates to inherent unfairnessâ that is, a partyâs attempt to have it both ways by switching between litigation and arbitration to its own advantage:
[F]or purposes of a waiver of an arbitration agreement[,] prejudice refers to the inherent unfairness in terms of delay, expense, or damage to a partyâs legal position that occurs when the partyâs opponent forces it to litigate an issue and later seeks to arbitrate that same issue.93
Thus, âa party should not be allowed purposefully and unjustifiably to manipulate the exercise of its arbitral rights simply to gain an unfair tactical advantage over the opposing party.â
Here, the record before the trial court showed that the Culls objected to arbitration initially, and then insisted on it after the Defendants acquiesced in litigation. They got extensive discovery under one set of rules and then sought to arbitrate the case under another. They delayed disposition by switching to arbitration when trial was imminent and arbitration was not. They got the court to order discovery for them and then limited their opponentsâ rights to appellate review. Such manipulation of litigation for one partyâs advantage and anotherâs detriment is precisely the kind of inherent unfairness that constitutes prejudice under federal and state law.
B. A Response to the Dissents
Although we have repeatedly said arbitration agreements can be waived, todayâs dissents would effectively hold they cannot. That would favor arbitration too much; because most agreements can be waived by the partiesâ conduct,
The dissents make several mistakes in their analyses. First, they misconstrue the standard of review. Every
Under a proper abuse-of-discretion review, waiver is a question of law for the court,
again is impossible; arbitrators have almost unbridled discretion regarding discovery, so no one can predict what they might do in advance. Presuming (as the dissents do) that broad discovery is generally available in arbitration simply ignores one of its most distinctive features.
Third, both dissents quibble with the Defendantsâ proof of prejudice because it was insufficiently detailed.
Finally, the dissentsâ focus on discovery ignores all the other circumstances that the totality-of-the-circumstances test requires us to consider. Because we must consider all the circumstances, the amount of discovery needed to show prejudice will vary depending on what the other circumstances are. As the Fifth Circuit has held, prejudice should be easier to show against a party that initially opposed arbitration than against one who sought it from the start:
While the mere failure to assert the right to demand arbitration does not alone translate into a waiver of that right, such failure does bear on the question of prejudice, and may, along with other considerations, require a court to conclude that waiver has occurred. The failure to demand arbitration affects the burden placed upon the party opposing waiver. When a timely demand for arbitration was made, the burden of proving waiver falls even more heavily on the shoulders of the party seeking to prove waiver. A demand for arbitration puts a party on notice that arbitration may be forthcoming, and therefore, affords that party the opportunity to avoid compromising its position with respect to arbitrable and nonarbitrable claims. In contrast, where a party fails to demand arbitration ... and in the meantime engages in pretrial activity inconsistent with an intent to arbitrate, the party later opposing a motion to compel arbitration may more easily show that its position has been compromised, i.e., prejudiced.111
It is these other circumstances that make this case different from In re Vesta.
Applying the proper standard of review and the proper definition of prejudice, we disagree with the dissents that the Defendants have failed to show prejudice here.
Finally, the Culls argue the warranty companies cannot object to arbitration for two reasons.
First, the warranty companies originally requested arbitration (which the Culls opposed), so it could be argued that it is unfair to hold the Culls to their original position without holding the warranty companies to theirs. Of course, we cannot hold both parties to their original positions as those positions were contradictory. More important, while the partiesâ original demands are relevant factors, the test is the totality of the circumstances. Looking to all the circumstances, it is quite dear from the partiesâ extensive co-participation in months of discovery that everyone waived their right to arbitration â whether they asserted that right early (as did the warranty companies) or late (as did the Culls).
Second, the Culls argue that the only objection to the trial courtâs order compelling arbitration was filed by Perry Homes, not the warranty companies. It is true that only Perry Homesâ attorneys signed the motion, but in that motion and at the hearing held on it they represented that they were authorized to do so on behalf of all the Defendants. If the Culls wanted to question their authority to speak for the warranty companies, they should have done so by sworn motion.
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Accordingly, we reverse the court of appealsâ judgment, vacate the arbitration award, and remand this case to the trial court for a prompt trial.
Justice OâNEILL filed a concurring opinion.
Justice JOHNSON filed an opinion concurring in part and dissenting in part, in which Chief Justice JEFFERSON and Justice GREEN joined.
. See L.H. Lacy Co. v. City of Lubbock, 559 S.W.2d 348, 351 (Tex.1977).
. See Republic Ins. Co. v. PAICO Receivables, LLC, 383 F.3d 341, 348 (5th Cir.2004); Com-Tech Assocs. v. Computer Assocs. Intâl, Inc., 938 F.2d 1574, 1576-77 (2d Cir.1991); Price v. Drexel Burnham Lambert, Inc., 791 F.2d 1156, 1160 (5th Cir.1986); In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 764 (Tex.2006).
. See, e.g., In re Vesta, 192 S.W.3d at 763; In re Bruce Terminix Co., 988 S.W.2d 702, 704-OS (Tex.1998); EZ Pawn Corp. v. Mandas, 934 S.W.2d 87, 89-90 (Tex.1996).
.The warranty provided:
Any "unresolved disputeâ (defined below) that you may have with [Perry Homes or the warranty companies] shall be submitted to binding arbitration governed by the procedures of the Federal Arbitration Act, 9 U.S.C. § 1 et seq.... The dispute will be submitted to the American Arbitration Association, or such other independent arbitration service as is agreeable to the [warranty administrator] and you....
. Perry Homes sought mandamus in the court of appeals on April 11, 2002, and was denied 7 days later. It refiled in this Court on April 26, and was denied 13 days later.
. Chambers v. OâQuinn, 242 S.W.3d 30, 32 (Tex.2007).
. In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 135-36 (Tex.2004); Walker v. Packer, 827 S.W.2d 833, 840 (Tex.1992).
. See Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79, 89, 121 S.Ct. 513, 148 L.Ed.2d 373 (2000); Chambers, 242 S.W.3d at 31; see also Gulf Oil Corp. v. Guidry, 160 Tex. 139, 327 S.W.2d 406, 408 (1959) (invalidating portion of award regarding nonarbitrable issues); Fortune v. Killebrew, 86 Tex. 172, 23 S.W. 976, 978 (1893) (same).
. Pope v. Stephenson, 787 S.W.2d 953, 954 (Tex.1990) ("The decision not to pursue the extraordinary remedy of mandamus does not prejudice or waive a partyâs right to complain on appeal.â); accord, City of San Benito v. Rio Grande Valley Gas Co., 109 S.W.3d 750, 756 (Tex.2003); Walker v. Packer, 827 S.W.2d 833, 842 n.9 (Tex.1992).
. See 9 U.S.C. § 16(b)(2); see also Tex Civ. Prac. & Rem.Code § 171.098 (providing for interlocutory appeal only of orders denying motion to compel arbitration).
. See David D. Siegel, Appeals from Arbitra-bility Determinations, Practice Commentary to 9 U.S.C. § 16 (âThe mission of § 16 is to assure that if the district court does determine that arbitration is called for, the court system's interference with the arbitral process will terminate then and there, leaving the arbitration free to go forward. To accomplish this, § 16 provides in general that there may be no appeal from the pro-arbitration determination until after the arbitration has gone forward to a final award.â); see also Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure § 3914.17 (2d ed.1992).
. In re Palacios, 221 S.W.3d 564, 565 (Tex.2006). Courts may review an order compelling arbitration if the order also dismisses the underlying litigation so it is final rather than interlocutory. See Green Tree Fin. Corp.-Ala., 531 U.S. at 87 n.2, 121 S.Ct. 513; Childers v. Advanced Found. Repair, L.P., 193 S.W.3d 897, 898 (Tex.2006). As we noted in Palacios, the Fifth Circuit has indicated it may review a district court's decision to stay rather than dismiss if a petitioner shows "clearly and indisputably that the district court did not have the discretion to stay the proceedings
. See 9 U.S.C. § 10(a).
. First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 947-48, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995). The Court noted that a different rule would apply if the parties clearly and unmistakably indicated in the arbitration contract that the arbitrator should decide arbitrability, id., but there is no such indication in this contract.
. Preston v. Ferrer, -U.S. -, 128 S.Ct. 978, 169 L.Ed.2d 917 (2008) (quoting Moses H. Cone Memâl Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 22, 103 S.Ct. 927, 74 L.Ed.2d 765 (1983)).
. In re Serv. Corp. Intâl, 85 S.W.3d 171, 174 (Tex.2002); In re Bruce Terminix Co., 988 S.W.2d 702, 703-04 (Tex. 1998); accord, In re Citigroup, Inc., 376 F.3d 23, 26 (1st Cir.2004); Thyssen, Inc. v. Calypso Shipping Corp., S.A., 310 F.3d 102, 104 (2d Cir.2002); Ivax Corp. v. B. Braun of Am., Inc., 286 F.3d 1309, 1316 n. 18 (11th Cir.2002); Price v. Drexel Burnham Lambert, Inc., 791 F.2d 1156, 1159 (5th Cir. 1986).
. See In re Bank One, N.A., 216 S.W.3d 825, 827 (Tex.2007) (finding no waiver under FAA); In re D. Wilson Constr. Co., 196 S.W.3d 774, 783 (Tex.2006) (same); In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 764 (Tex.2006) (same); In re Serv. Corp. Intâl, 85 S.W.3d at 174 (same); In re Bruce Terminix Co., 988 S.W.2d at 704-05 (same); In re Oakwood Mo bile Homes, Inc., 987 S.W.2d 571, 574 (Tex. 1999) (same); EZ Pawn Corp. v. Mandas, 934 S.W.2d 87, 89-90 (Tex.1996) (same); Prudential Sec. Inc. v. Marshall, 909 S.W.2d 896, 899 (Tex.1995).
. See, e.g., Creative Solutions Group, Inc. v. Pentzer Corp., 252 F.3d 28, 32-34 (1st Cir. 2001); Doctorâs Assocs., Inc. v. Distajo, 66 F.3d 438, 456 (2d Cir.1995); Wood v. Prudential Ins. Co. of Am., 207 F.3d 674, 680 (3d Cir.2000); Am. Recovery Corp. v. Computerized Thermal Imaging, Inc., 96 F.3d 88, 96 (4th Cir.1996); Subway Equip. Leasing Corp. v. Forte, 169 F.3d 324, 329 (5th Cir.1999); Germany v. River Terminal Ry. Co., 477 F.2d 546, 547 (6th Cir. 1973); Ernst & Young LLP v. Baker OâNeal Holdings, Inc., 304 F.3d 753, 758 (7th Cir.2002); Ritzel Commcâns v. Mid-American Cellular, 989 F.2d 966, 969-71 (8th Cir. 1993); Martin Marietta Aluminum, Inc. v. Gen. Elec. Co., 586 F.2d 143, 146 (9th Cir. 1978); Metz v. Merrill Lynch, Pierce, Fenner &
. 537 U.S. 79, 84, 123 S.Ct. 588, 154 L.Ed.2d 491 (2002) (quoting Moses H. Cone Memâl Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24-25, 103 S.Ct. 927, 74 L.Ed.2d 765 (1983)).
. See, e.g., Green Tree Fin. Corp. v. Bazzle, 539 U.S. 444, 447, 123 S.Ct. 2402, 156 L.Ed.2d 414 (2003) (holding whether arbitration could proceed by class action was question for arbitrator); lohn Wiley & Sons, Inc. v. Livingston, 376 U.S. 543, 557, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964) (holding question whether steps of grievance procedure prerequisite to arbitration had been completed was for arbitrator); Sleeper Farms v. Agway, Inc., 506 F.3d 98, 104 (1st Cir.2007) (noting question whether breach of contract voided arbitration clause would normally be for arbitrator); United Steelworkers of Am. v. Saint Gobain Ceramics & Plastics, Inc., 505 F.3d 417, 422 (6th Cir.2007) (holding question of timely demand for arbitration was for arbitrator); Ansari v. Qwest Commcâns Corp., 414 F.3d 1214, 1220-21 (10th Cir.2005) (holding question whether plaintiffs waived forum selection clause by filing suit elsewhere was for arbitrator); Pro Tech Indus., Inc. v. URS Corp., 377 F.3d 868, 871-72 (8th Cir.2004) (holding questions of timely demand and waiver by failing to initiate arbitration were for arbitrator); Glass v. Kidder Peabody & Co., 114 F.3d 446, 457 (4th Cir. 1997) (holding question of timely demand for arbitration was for arbitrator); Great W. Mortgage Corp. v. Peacock, 110 F.3d 222, 231-32 (3d Cir. 1997) (holding question of waiver of substantive state law rights was for arbitrator).
. See Howsam, 537 U.S. at 81-82, 123 S.Ct. 588.
. Tristar Fin. Ins. Agency, Inc. v. Equicredit Corp. of Am., 97 Fed.Appx. 462, 464 (5th Cir.2004).
. Id.
. Howsam, 537 U.S. at 83-84, 123 S.Ct. 588 (internal quotations omitted); see also Green Tree Fin. Corp. v. Bazzle, 539 U.S. 444, 451-52, 123 S.Ct. 2402, 156 L.Ed.2d 414 (2003).
. See Marie v. Allied Home Mortgage Corp., 402 F.3d 1, 13 (1st Cir.2005).
. Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440, 449, 126 S.Ct. 1204, 163 L.Ed.2d 1038 (2006) (âWe reaffirm today that ... a challenge to the validity of the contract as a whole, and not specifically to the arbitration clause, must go to the arbitrator.â).
. In re Merrill Lynch Trust Co. FSB, 235 S.W.3d 185, 190 (Tex.2007) (holding claim that contract was illusory went to contract as a whole and thus was for arbitrators); In re FirstMerit Bank, N.A., 52 S.W.3d 749, 756 (Tex.2001) ("The de los Santoses assert the defenses of unconscionability, duress, fraudulent inducement, and revocation. We again note that these defenses must specifically relate to the Arbitration Addendum itself, not the contract as a whole, if they are to defeat arbitration.â); see also In re Kaplan Higher Educ. Corp., 235 S.W.3d 206, 210 (Tex.2007) (holding claim of "unclean handsâ that went to contract as a whole rather than arbitration clause was question for arbitrators).
. In re Tyco Iniâl Ltd. Sec. Litig., 422 F.3d 41, 45-47 (1st Cir.2005); Marie, 402 F.3d at 13-14; In re Citigroup, Inc., 376 F.3d 23, 27-29 (1st Cir.2004); Rankin v. Allstate Ins. Co., 336 F.3d 8, 12-14 (1st Cir.2003); Restoration Pres. Masonry, Inc. v. Grove Eur. Ltd., 325 F.3d 54, 61-63 (1st Cir.2003).
. Ehleiter v. Grapetree Shores, Inc., 482 F.3d 207, 217-21 (3d Cir.2007).
. Republic Ins. Co. v. PAICO Receivables, LLC, 383 F.3d 341, 344-47 (5th Cir.2004); Tristar Fin. Ins. Agency, Inc. v. Equicredit Corp. of Am., 97 Fed.Appx. 462, 464 (5th Cir.2004).
. Lewallen v. Green Tree Servicing, L.L.C., 487 F.3d 1085, 1090-94 (8th Cir.2007); Kelly v. Golden, 352 F.3d 344, 349-50 (8th Cir. 2003). The Eighth Circuit did refer to How-sam in one case as requiring waiver to be referred to arbitrators, but that case involved an allegation of waiver by previous arbitration, not litigation. See Nat'l Am. Ins. Co. v. Transamerica Occidental Life Ins. Co., 328 F.3d 462, 463-66 (8th Cir.2003).
. See David LeFevre, Note, Whose Finding is it Anyway?: The Division of Labor Between Courts and Arbitrators with Respect to Waiver, 2006 J. Disp. Resol. 305, 316-17 (2006); Stephen K. Huber, The Arbitration Jurisprudence of the Fifth Circuit, Round II, 37 Tex Tech L.Rev. 531, 542 (2005).
. In re Bank One, N.A., 216 S.W.3d 825, 827 (Tex.2007); In re D. Wilson Constr. Co., 196 S.W.3d 774, 783 (Tex.2006); In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 763 (Tex.2006); In re Serv. Corp. Intâl, 85 S.W.3d 171, 174 (Tex.2002); In re Oakwood Mobile Homes, Inc., 987 S.W.2d 571, 574 (Tex.1999); In re Bruce Terminix Co., 988 S.W.2d 702, 704 (Tex.1998); EZ Pawn Corp. v. Mandas, 934 S.W.2d 87, 89 (Tex.1996); Prudential Sec. Inc. v. Marshall, 909 S.W.2d 896, 898-99 (Tex.1995).
. In re Bank One, N.A., 216 S.W.3d at 827; In re D. Wilson Constr. Co., 196 S.W.3d at 783; In re Vesta Ins. Group, Inc., 192 S.W.3d at 763; In re Serv. Corp. Int'l, 85 S.W.3d at 174; In re Bruce Terminix Co., 988 S.W.2d at 704; EZ Pawn Corp., 934 S.W.2d at 89.
. In re D. Wilson Constr. Co., 196 S.W.3d at 783.
. In re Vesta Ins. Group, Inc., 192 S.W.3d at 764.
. In re Bank One, N.A., 216 S.W.3d at 827.
. In re Serv. Corp. Intâl, 85 S.W.3d at 174-75.
. Prudential Sec. Inc. v. Marshall, 909 S.W.2d 896, 898-99 (Tex.1995).
. In re Bruce Terminix Co., 988 S.W.2d at 704.
. EZ Pawn Corp. v. Mandas, 934 S.W.2d 87, 90 (Tex.1996).
. In re Vesta Ins. Group, Inc., 192 S.W.3d at 763 (holding requests for disclosure, four depositions, and request for production did not waive arbitration absent proof regarding extent of requests and whether they addressed merits or arbitrability).
. Id. at 764.
. In re Tyco Intâl Ltd. Sec. Litig., 422 F.3d 41, 46 (1st Cir.2005) (ââ[E]ach case is to be judged on its particular facts.â); Republic Ins. Co. v. PAICO Receivables, LLC, 383 F.3d 341, 346 (5th Cir.2004) (âUltimately, however, the question of what constitutes a waiver of the right of arbitration depends on the facts of each case.â); accord, Ivax Corp. v. B. Braun of Am., Inc., 286 F.3d 1309, 1315 (11th Cir. 2002); Grumhaus v. Comerica Sec., Inc., 223 F.3d 648, 650 (7th Cir.2000); NatT Found, for Cancer Research v. A.G. Edwards & Sons, Inc.,
. Grumhaus, 223 F.3d at 650; see also Cabi-netree of Wis., Inc. v. Kraftmaid Cabinetry, Inc., 50 F.3d 388, 391 (7th Cir.1995).
. PAICO, 383 F.3d at 346; In re Citigroup, Inc., 376 F.3d 23, 26 (1st Cir.2004); Metz v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 39 F.3d 1482, 1489 (10th Cir. 1994); Hoxworth v. Blinder, Robinson & Co., 980 F.2d 912, 926 (3d Cir.1992).
. Brown v. Dillardâs, Inc., 430 F.3d 1004, 1012 (9th Cir.2005); Patten Grading & Paving, Inc. v. Skanska USA Bldg., Inc., 380 F.3d 200, 206 (4th Cir.2004).
. PAICO, 383 F.3d at 346; Kelly v. Golden, 352 F.3d 344, 349 (8th Cir.2003); Hoxworth, 980 F.2d at 926; Gilmore v. Shearson/American Express Inc., 811 F.2d 108, 112 (2d Cir. 1987); Sedeo, Inc. v. PetrĂłleos Mexicanos Mexican Natâl Oil Co., 767 F.2d 1140, 1150-51 (5th Cir.1985).
. PAICO, 383 F.3d at 346; Patten Grading, 380 F.3d at 205; In re Citigroup, 376 F.3d at 26; Metz, 39 F.3d at 1489; Hoxworth, 980 F.2d at 927.
. Hoxworth, 980 F.2d at 927; Com-Tech Assocs. v. Computer Assocs. Intâl, Inc., 938 F.2d 1574, 1577 (2d Cir.1991); E.C. Ernst, Inc. v. Manhattan Constr. Co., 551 F.2d 1026, 1040-41 (5th Cir. 1977); Blake Constr. Co. v. U.S. for Use and Benefit of Lichter, 252 F.2d 658, 662 (5th Cir.1958).
. In re Citigroup, 376 F.3d at 26; Metz, 39 F.3d at 1489.
. In re Citigroup, 376 F.3d at 26; Kelly, 352 F.3d at 349; Metz, 39 F.3d at 1489.
. Kelly, 352 F.3d at 349; Metz, 39 F.3d at 1489.
. Leadertex, Inc. v. Morganton Dyeing & Finishing Corp., 67 F.3d 20, 25 (2d Cir.1995); Peterson v. Shearson/American Express, Inc., 849 F.2d 464, 468 (10th Cir.1988) (finding waiver as movant waited until five weeks before trial date to move to compel).
. See, e.g., Restoration Preserv. Masonry, Inc. v. Grove Eur. Ltd., 325 F.3d 54, 62 (1st Cir. 2003) (finding three-year delay alone sufficient to establish waiver); Cabinetree of Wis., Inc. v. Kraftmaid Cabinetry, Inc., 50 F.3d 388, 391 (7th Cir.1995) (finding removal to federal court alone sufficient to establish waiver).
. See EZ Pawn Corp. v. Mandas, 934 S.W.2d 87, 88-89 (Tex.1996) (finding no waiver as defendant did not discover existence of arbitration agreement for almost a year).
. In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 763 (Tex.2006).
. Id.
. Id.
. Id.; In re Bruce Terminix Co., 988 S.W.2d 702, 704 (Tex.1998).
. In re Bruce Terminix Co., 988 S.W.2d at 704.
. See In re Bruce Terminix Co., 988 S.W.2d at 704.
. See, e.g., Tex. Civ. Prac. & Rem.Code § 171.021(a) ("A court shall order the parties to arbitrate on application of a party showing: (1) an agreement to arbitrate; and (2) the opposing party's refusal to arbitrate.â).
. In re D. Wilson Constr. Co., 196 S.W.3d 774, 783 (Tex.2006); accord, United Computer Sys., Inc. v.AT&T Corp., 298 F.3d 756, 764 (9th Cir.2002).
. See R.R. St. & Co. v. Pilgrim Enters., Inc., 166 S.W.3d 232, 242-43 (Tex.2005) (quotation marks omitted) (applying totality-of-the-circumstances test in determining whether party "otherwise arrangedâ to dispose of hazardous waste).
. See Burton-Dixie Corp. v. Timothy McCarthy Constr. Co., 436 F.2d 405, 407-08 (5th Cir.1971) ("There is no set rule, however, as to what constitutes a waiver or abandonment of the arbitration agreement. The question depends upon the facts of each case and usually must be determined by the trier of facts.â); Joel E. Smith, Annotation, Defendant's Participation in Action as Waiver of Right to Arbitration of Dispute Involved Therein, 98 A.L.R.3d 767, 771 (1980) ("In those cases involving the issue of whether the defendantâs participation in an action constitutes a waiver of the right to arbitrate the dispute involved therein, no general rules are readily apparent for determining waiver other than the general adherence by the courts to the principle that waiver is to be determined from the particular facts and circumstances of each case....â).
. Kulko v. Superior Court of Cat, 436 U.S. 84, 92, 98 S.Ct. 1690, 56 L.Ed.2d 132 (1978) (quoting Estin v. Estin, 334 U.S. 541, 545, 68 S.Ct. 1213, 92 L.Ed. 1561 (1948)).
. See, e.g., TexR. Civ. P. 190.2(c)(2) (limiting parties in Level 1 cases to six hours of depositions).
. See, e.g., In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 763 (Tex.2006) (holding four depositions did not waive arbitration as record did not show whether they were limited or extensive or whether they addressed merits or merely arbitrability).
. Trammell Crow Co. No. 60 v. Harkinson, 944 S.W.2d 631, 636 (Tex.1997); see English v. Fischer, 660 S.W.2d 521, 524 (Tex.1983); Moore Burger, Inc. v. Phillips Petroleum Co., 492 S.W.2d 934, 936-37 (Tex.1972); Wheeler v. White, 398 S.W.2d 93, 96 (Tex.1965); Restatement (Second) Of Contracts § 90 (1979).
. In re Weekley Homes, L.P., 180 S.W.3d 127, 133-35 (Tex.2005); accord, Meyer v. WMCO-GP, LLC, 211 S.W.3d 302, 305 (Tex.2006).
. First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 943, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995).
. See Van Indep. Sch. Dist. v. McCarty, 165 S.W.3d 351, 353 (Tex.2005); First Valley Bank of Los Fresnos v. Martin, 144 S.W.3d 466, 471 (Tex.2004); lemiganv. Langley, 111 S.W.3d 153, 156 (Tex.2003); Equitable Life Assurance Socây of U.S. v. Ellis, 105 Tex. 526, 152 S.W. 625, 628 (1913).
. In re D. Wilson Constr. Co., 196 S.W.3d 774, 783 (Tex.2006); EZPawn Corp. v. Mandas, 934 S.W.2d 87, 89 (Tex.1996).
. In re Bruce Terminix Co., 988 S.W.2d 702, 704 (Tex.1998).
. In re Bank One, N.A., 216 S.W.3d 825, 827 (Tex.2007); In re D. Wilson Constr. Co., 196 S.W.3d at 783; In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 763 (Tex.2006); In re Serv. Corp. Intâl, 85 S.W.3d 171, 174 (Tex.2002); In re Bruce Terminix Co., 988 S.W.2d at 704; In re Oalcwood Mobile Homes, Inc., 987 S.W.2d 571, 574 (Tex.1999); EZ Pawn Corp., 934 S.W.2d at 89; Prudential Sec. Inc. v. Marshall, 909 S.W.2d 896, 898-99 (Tex.1995).
. See In re Gen. Elec. Capital Corp., 203 S.W.3d 314, 316 (Tex.2006); Sun Exploration & Prod. Co. v. Benton, 728 S.W.2d 35, 37 (Tex. 1987); Bocanegra v. Aetna Life Ins. Co., 605 S.W.2d 848, 851 (Tex. 1980); Mass. Bonding & Ins. Co. v. Orkin Exterminating Co., 416 S.W.2d 396, 401 (Tex.1967); Texas & P. Ry. Co. v. Wood, 145 Tex. 534, 199 S.W.2d 652, 656 (1947); Kennedy v. Bender, 104 Tex. 149, 135 S.W. 524, 526 (1911); see also Cabinetree of Wis., Inc. v. Kraftmaid Cabinetry, Inc., 50 F.3d 388, 390 (7th Cir.1995) (citing authorities showing that contract law generally holds waiver effective without proof of detrimental reliance).
. Mass. Bonding & Ins. Co. v. Orkin Exterminating Co., 416 S.W.2d 396, 401 (Tex.1967).
. See Doctorâs Assocs., Inc. v. Casarotto, 517 U.S. 681, 686-87, 116 S.Ct. 1652, 134 L.Ed.2d 902 (1996); Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 281, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995).
. In re Citigroup, Inc., 376 F.3d 23, 26 (1st Cir.2004) (âWe have emphasized that, to succeed on a claim of waiver, plaintiffs must show prejudice."); Thyssen, Inc. v. Calypso Shipping Corp., S.A., 310 F.3d 102, 105 (2d Cir.2002); Hoxworth v. Blinder, Robinson & Co., 980 F.2d 912, 925 (3d Cir.1992) (â[P]rej-udice is the touchstone for determining whether the right to arbitrate has been waived-â); Patten Grading & Paving, Inc. v. Skanska USA Bldg., Inc., 380 F.3d 200, 206 (4th Cir.2004) ("[T]he dispositive question is whether the party objecting to arbitration has suffered actual prejudice.â) (internal quotations and italics omitted); Republic Ins. Co. v. PAICO Receivables, LLC, 383 F.3d 341, 346 (5th Cir.2004) ("In addition to the invocation of the judicial process, there must be prejudice to the party opposing arbitration before we will find that the right to arbitrate has been waived.â); O.J. Distrib., Inc. v. Homell Brewing Co., 340 F.3d 345, 356 (6th Cir. 2003); Kelly v. Golden, 352 F.3d 344, 349 (8th Cir.2003) ("The actions must result in prejudice to the other party for waiver to have occurred."); Brown v. Dillardâs, Inc., 430 F.3d 1004, 1012 (9th Cir.2005); Metz v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 39 F.3d 1482, 1490 (10th Cir.1994); Ivax Corp. v. B. Braun of Am., Inc., 286 F.3d 1309, 1316 (11th Cir.2002) ("[W]e look to see whether, by [invoking the litigation process], that party has in some way prejudiced the other party.") (internal quotations omitted).
. St. Maryâs Med. Ctr. of Evansville, Inc. v. Disco Aluminum Prods. Co., 969 F.2d 585, 590-91 (7th Cir.1992); Natâl Found, for Cancer Research v. A.G. Edwards & Sons, Inc., 821 F.2d 772, 777 (D.C.Cir.1987) (holding "a court may consider prejudice to the objecting party as a relevant factor among the circumstances that the court examines in deciding whether the moving party has taken action inconsistent with the agreement to arbitrateâ).
. In re Weekley Homes, L.P., 180 S.W.3d 127, 130-31 (Tex.2005); In re Kellogg Brown &
. Trammell Crow Co. No. 60 v. Harkinson, 944 S.W.2d 631, 636 (Tex.1997); see English v. Fischer, 660 S.W.2d 521, 524 (Tex.1983); Moore Burger, Inc. v. Phillips Petroleum Co., 492 S.W.2d 934, 936 (Tex.1972); Wheeler v. White, 398 S.W.2d 93, 96 (Tex.1965); Restatement (Second) of Contracts § 90 (1979).
. Restatemenx (Second) of Contracts § 87(2) (1981) (âAn offer which â 6 offeror should reasonably expect to induce action or forbearance of a substantiaI character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice.â),
. Because we limit our review to the record before the trial judge, we do not consider the Defendantsâ additional seven volumes of discovery exhibits filed after the arbitration award.
. 173 S.W.3d 565, 570; see also Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79, 89, 121 S.Ct. 513, 148 L.Ed.2d 373 (2000) (holding that unconscionable arbitration fee would render clause unenforceable).
. See In re Tyco Int'l Ltd. Sec. Litig., 422 F.3d 41, 46 (1st Cir.2005) (holding defendantâs objections to arbitration before criminal trial waived his right to arbitration); Gilmore v. ShearsontAmerican Exp. Inc., 811 F.2d 108, 112 (2d Cir.1987) (holding party's withdrawal of its prior motion to compel arbitration constituted express waiver of that right).
.See In re Vesta Ins. Group, Inc., 192 S.W.3d 759, 764 (Tex.2006) (citing Com-Tech Assocs. v. Computer Assocs. Intâl, Inc., 938 F.2d 1574, 1576-77 (2d Cir.1991), in which arbitration was waived by request that did not come until 18 months after filing and 4 months before trial).
.Republic Ins. Co. v. PAICO Receivables, LLC, 383 F.3d 341, 346 (5th Cir.2004) (punctuation omitted); accord, In re Tyco, 422 F.3d at 46 n. 5 ("[A] party should not be allowed purposefully and unjustifiably to manipulate the exercise of its arbitral rights simply to gain an unfair tactical advantage over the opposing party.â); In re Citigroup, Inc., 316 F.3d 23, 28 (1st Cir.2004); Subway Equip. Leasing Corp. v. Forte, 169 F.3d 324, 327 (5th Cir.1999); PPG Indus., Inc. v. Webster Auto Parts, Inc., 128 F.3d 103, 107 (2d Cir.1997); Doctorâs Assocs. v. Distajo, 107 F.3d 126, 134 (2d Cir.1997) (ââ[Prejudice as defined by our cases refers to the inherent unfairness-in terms of delay, expense, or damage to a partyâs legal position-that occurs when the party's opponent forces it to litigate an issue and later seeks to arbitrate that same issue.â).
. In re Tyco, 422 F.3d at 46 n. 5.
. See, e.g., Tenneco Inc. v. Enter. Prods. Co., 925 S.W.2d 640, 643 (Tex. 1996) (holding companies waived contractual right to approve assignments by treating assignee as full partner); Ford v. State Farm Mut. Auto. Ins. Co., 550 S.W.2d 663, 666 (Tex.1977) (holding insurer waived contractual right to consent to settlement by denying liability under policy).
. See Prima Paint Corp. v. Flood & Conklin Mfg. Co., 388 U.S. 395, 404 n. 12, 87 S.Ct. 1801, 18 L.Ed.2d 1270 (1967) (ââ[Tlhe purpose of Congress in 1925 was to make arbitration agreements as enforceable as other contracts, but not more so.â).
. W. Wendell Hall, Standards of Review in Texas, 38 St. Maryâs LJ. 43, 67 (2006).
. Tex Civ. Prac. & Rem.Code § 37.009 ("In any proceeding under this chapter, the court may award costs and reasonable and necessary attorneyâs fees as are equitable and just.â (emphasis added)).
. See Tex.R. Evid. 801-806.
. See Natâl Liab. and Fire Ins. Co. v. Allen, 15 S.W.3d 525, 529 (Tex.2000) (hearsay); Bocquet v. Herring, 972 S.W.2d 19, 21 (Tex. 1998) (declaratory fee award).
. In re Serv. Corp. Intâl, 85 S.W.3d 171, 174 (Tex.2002); In re Oak-wood Mobile Homes, Inc., 987 S.W.2d 571, 574 (Tex.1999); In re Bruce Terminix Co., 988 S.W.2d 702, 703-04 (Tex. 1998).
. Brainard v. State, 12 S.W.3d 6, 30 (Tex. 1999) (holding that in abuse-of-discretion standard "we defer to the trial courtâs factual determinations if they are supported by the evidence and review its legal determinations de novoââ); Walker v. Packer, 827 S.W.2d 833, 840 (Tex. 1992) (âA trial court has no âdiscretionâ in determining what the law is or applying the law to the facts. Thus, a clear failure by the trial court to analyze or apply the law correctly will constitute an abuse of discretion .... â); see Hall, supra note 97, at 284 (âWhen the trial courtâs findings involve [mixed] questions of law and fact, the appellate court reviews the trial court's decision for an abuse of discretion. In applying the standard, the reviewing court defers to the trial courtâs factual determinations if supported by the evidence and reviews its legal determinations de novo.â); cf. Gulf Guar. Life Ins. Co. v. Conn. Gen. Life Ins. Co., 304 F.3d 476, 484 (5th Cir.2002) ("This court reviews de novo a district courtâs dismissal of a claim that a party waived its right to arbitrate.â); accord, Ivax Corp. v. B. Braun of Am., Inc., 286 F.3d 1309, 1316 (11th Cir.2002); Subway Equip. Leasing Corp. v. Forte, 169 F.3d 324, 326 (5th Cir.1999).
. Brainard, 12 S.W.3d at 30; Walker, 827 S.W.2d at 840; see Hall, supra note 97, at 284; cf. Gulf Guar., 304 F.3d at 484; accord, Ivax Corp., 286 F.3d at 1316; Subway Equip., 169 F.3d at 326.
. See Reliance Natâl Indem. Co. v. Advance'd Temps., Inc., 227 S.W.3d 46, 50 (Tex.2007) ("What might otherwise be a question of fact becomes one of law when the fact is not in dispute or is conclusively established.â); Hall, supra note 97, at 284 ("[A] trial court abuses its discretion [if the court] ... fails to properly apply the law to the undisputed facts_â).
. See supra Part VI.A.
. 258 S.W.3d at 606-07 ("But even if the Court is right and the reimbursement clause does not allow for recovery of all Defendantsâ litigation attorney's fees, an arbitration award would not be subject to being vacated if an arbitrator interpreted it to allow recovery of all the fees.â).
. The parties contract limited reimbursement to costs incurred in "seeking dismissalâ of litigation, not costs incurred in preparing it for trial:
Inasmuch as this Agreement provides for mandatory arbitration of disputes, if any party commences litigation in violation of this Agreement, such party shall reimburse the other parties to the litigation for their costs and expenses including attorney's fees incurred in seeking dismissal of such litigation.
(emphasis added).
. See Preston v. Ferrer, - U.S. -, 128 S.Ct. 978, 986, 169 L.Ed.2d 917 (2008) ("A prime objective of an agreement to arbitrate is to achieve streamlined proceedings and expeditious results.â); Cabinetree of Wis., Inc. v. Kraftmaid Cabinetry, Inc., 50 F.3d 388, 391 (7th Cir.1995) (noting that "the discovery provisions of the Federal Rules of Civil Procedure are more generous than those of the American Arbitration Associationâ); cf. Price v. Drexel Burnham Lambert, Inc., 791 F.2d 1156, 1160 (5th Cir.1986) (finding prejudice due to discoveiy as "discovery â whether meaningful or otherwise â is not available in arbitrationâ); Miller Brewing Co. v. Fort Worth Distrib. Co., 781 F.2d 494, 498 (5th Cir.1986) (âA party to arbitration does not have a right to the pre-trial discovery procedures that are used in a case at law.â); Developments in the Law-Discovery, 74 Harv. L.Rev. 940, 943 (1961) (noting expense of discovery as inconsistent with desire to arbitrate).
. The court of appeals affirmed on this basis. 173 S.W.3d at 570 (âAppellants did not provide any evidence of the work done, time spent, or costs incurred that would not have been done or incurred in anticipation of an arbitration hearing.â).
. Tex Civ. Prac. & Rem.Code § 171.021(b); see lack B. Anglin Co. v. Tipps, 842 S.W.2d 266, 269 (Tex. 1992).
. Republic Ins. Co. v. PAICO Receivables, LLC, 383 F.3d 341, 346 (5th Cir.2004) (internal citations and punctuation omitted).
. In re Vesta Ins. Group, Inc., 192 S.W.3d 759 (Tex.2006).
. Two of the numerous defendants in Vesta initially objected to the remaining defendants' motion to compel arbitration, but withdrew that objection before the hearing on the motion.
. Id. at 763.
. Id.
. The defendants in Vesta had stipulated that all discovery obtained so far could be used in arbitration.
. See Tex.R. Civ. P. 12.